Thursday, June 7, 2018

SG Market (07 Jun 18)

- The market could flip higher after Wall Street extended its rally on stronger economic data and trade war jitters took a back seat but upside gains could be tempered by news that Malaysia would review the planned SGX-Bursa Malaysia stock trading link.
- Technically, the STI appears to be struggling with no clear directional moves. Immediate resistance is at 3,510 (near 50-dma), while underlying support lies at 3,424 level (200-dma).

*TTJ Holdings
- 3QFY18 net profit climbed 27% to $3.1m, bringing 9MFY18 earnings to $7.5m (-22%).
- Revenue for the quarter jumped 71% to $28.7m on higher takings from its structural steel business.
- However, gross margin shrank 5.4ppt to 21.9% due to lower margin projects completed.
- Bottom line was impacted by absence of a $1.1m credit write-back recorded last year by Technics Steel.
- Trades at 13.4x trailing P/E.

- In the clearest sign of a turnaround in its cab business since the emergence of private hire cars five years ago, taxi bookings rose nearly 9% last month, the biggest jump since Sep '14.
- This follows Uber's exit from Southeast Asia and the pullback of Grab's rider promotions and driver incentives as well as a recent tender for the supply of 500 more taxis after it bought 200 new cabs in May, its first purchase in 18 months.
- Trades at 17.6x P/E and 4.2% yield.
- MKE has a Buy with TP of $2.65.

*Alliance Mineral
- Recorded 108% and 43% increases in lithium and tantalum ore reserves at its Bald Hill mine in Western Australia.
- The reserve upgrade reflects improvements in pit design and processing efficiencies yield and now support a mine life of 9 years at the current processing rate of 1.2m tpa.
- The increase in reserves and extension of mine life will pave the way for scaled up production.
- With strong market demand and economics of increased throughput rates, the JV partners are actively reviewing options for significant expansion in processing capacity and concentrate production.
- Trades at 5.9x P/B

*Asian Pay TV
- Disclosed that 13,000 units held by restricted investors have been sold in the open market.
- Net proceeds from sale will be returned in proportion to their respective unitholders.
- Trades at 14.6% indicative yield and 0.55x P/B.

- Updated that there was an incident involving JV liftboat Teras Lyzain the South China Sea on 5 Jun.
- The vessel was being dead towed from Vung Tau, Vietnam to Taichung, Taiwan when it developed a sudden list to the stern and subsequently capsized.
- Till now, Teras Lyza is still floating upside down and towing tug Teras Eden is standby on location to look out for any potential pollution.
- The liftboat is fully insured anf the group does not expect any material impact on its FY18 results.
- Trades at 0.65x P/B

*Del Monte Pacific
- Decided to defer the secondary listing of a 21% stake in Del Monte Philippines on the Philippine Stock Exchange due to volatile market conditions.
- Trades at 0.54x P/B.

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